While President Theodore Roosevelt’s statement “a date which will live in infamy” certainly does not apply to August 9, 2021, it is a date that professional gold traders will forever remember. Prior to the open of gold trading in New York it was evident in Asia that a major move in gold was beginning to take place.
Gold did recoup a vast majority of its intraday decline. And even though gold dropped $60 in a matter of minutes gold prices bounced back from the initial drop and closed at $1726. While there have been other occasions in which gold prices have dropped dramatically, this is the only occasion in which gold dropped $60 in a matter of minutes and substantially recovered over half of the decline in a single day.
The reason that today’s article is focusing on the flash crash is the low of $1678.40 that was achieved on August 9, 2021. Those low match today’s low of $1678.40 which is why over the last month all of my daily gold charts have identified that price point as a level of major support.